Disclaimer: The findings of the following analysis are the sole opinions of the author and should not be considered investment advice.
Over the past two months, Ethereum Classic [ETC] saw a choppy move as it squeezed into the $30-$43 range. After posting impressive gains in its previous rally, the bears appeared to be re-entering the market with the coin losing its $30 baseline support.
ETC has dipped below the daily 20/50/200 EMA for the past few days to depict a strong selling advantage. Its current southward trip may continue to test new lows until the buyers step in to inflate the buying volumes. At press time, the alt was trading at $28.05, down a staggering 17.22% in just the past 24 hours.
ETC Daily Chart
Source: TradingView, ETC/USDT
ETC’s recent reversal from the $38 resistance put it back on the bearish track as it dipped below its EMAs. The coin has lost almost 30% of its value in the last four days.
This drop pulled ETC below the essential $30-$32 range as it slipped south past its high liquidity zone. With the 20 EMA (red) looking south, a bearish crossover with 50/200 EMA will further confirm the increasing selling power.
Additionally, the Supertrend changed its stance to reflect a sell signal as it turned red on September 18th. A sustained swing below the $28.4 level is likely to drive a continued slowdown. In this case, the buyers can expect a near-term recovery of the $24-$26 range in the coming sessions.
An inability of the 20 EMA to drop below the 50 EMA could help the buyers avoid an extended bloodbath. In these circumstances, the buyers will try to reclaim the crucial $32 level.
Rationale
Source: TradingView, ETC/USDT
The Relative Strength Index (RSI) hovered below the 40 region to reflect a robust selling advantage. A continued decline could plateau in the oversold region before a credible reversal.
The MACD line (blue) also dropped below the zero point to resonate with RSI’s bearish readings. Should the signal line (orange) fall below equilibrium, it would reaffirm the bearish bias at press time. Nevertheless, the ADX has a weak directional bias for the alt.
Closure
ETC’s bearish break below the EMAs set a favorable space for the bears. A short-term pullback could find recovery opportunities from the above targets.
In addition, the broader market sentiment and the on-chain developments will play an important role in influencing future movements. This analysis is critical to identifying any clumsy invalidations.
